Differing Views & Tensions within Liberalism

Liberalism is one of the most influential political ideologies shaping the development of Western democracies. At its heart lies the commitment to individual freedom. However, liberalism is not a monolithic tradition but contains within it significant differing views and tensions. These are most evident in the contrast between classical liberalism and modern liberalism, which have divergent ideas regarding the relationship between the individual and the state, the meaning of freedom, and the appropriate scope of government intervention.

The Roots of Liberalism

Emerging in the context of the Enlightenment, liberalism challenged the traditional authority of monarchy, aristocracy, and the church, positing the individual as the central unit of political life. It was shaped by thinkers such as John Locke, who advocated for government by consent and the protection of natural rights, and John Stuart Mill, who emphasised liberty and utilitarian rationale for limiting authority.

Classical Liberalism

Classical liberalism refers to the strand of liberal thought dominant from the seventeenth through the nineteenth centuries. Early liberals, such as John Locke, Adam Smith, and later Herbert Spencer, believed that individual freedom would best be achieved with the state playing a minimal role.

• Egoistical individualism: Classical liberals emphasised a view of individuals as self-interested, rational beings, best left to pursue their interests with as little interference as possible. The concept of egoistical individualism holds that individuals are atomistic, striving mainly for their own advancement and happiness, and that society is simply a collection of such self-seeking individuals.
• Negative freedom: In classical liberal thought, freedom is most commonly defined as negative freedom; the absence of external constraints or interference. For early liberals, the state’s role should be restricted to protecting life, liberty, and property, ensuring that individuals are not subject to arbitrary power. So long as individuals are ‘left alone’ by others and the state, they are considered free.
• Laissez-faire capitalism: Classical liberals are strongly associated with laissez-faire economics, a system whereby markets operate free from government intervention. Adam Smith’s ‘invisible hand’ metaphor argues that the pursuit of self-interest in free markets leads to benefits for society as a whole. The state’s economic role is limited to enforcing property rights, contracts, and defending the nation.

The classical liberal tradition is also closely linked to the rule of law, constitutional government, and political pluralism. However, the minimal state model has been criticised for neglecting inequalities and failing to address situations where individuals are not, in practice, equally free.

Modern Liberalism

In the late nineteenth and early twentieth centuries, liberalism underwent a significant transformation. Modern liberalism emerged as a reaction against the consequences of free-market capitalism and industrialisation. Modern liberals, such as T. H. Green, John Rawls, and later John Maynard Keynes, argued that the state had to adopt a more positive role in ensuring genuine individual freedom.

• Developmental individualism: Modern liberals developed the concept of developmental individualism, which recognises that individuals flourish in conditions where they are able to realise their potential. This requires not simply the absence of restraint but, in some cases, the provision of support—such as education, health care, and welfare—enabling individuals to take full advantage of opportunities.
• Positive freedom: The idea of positive freedom asserts that true liberty is not just being ‘left alone’, but having the capacity and resources to act and fulfil one’s goals. Modern liberals argue that social and economic inequalities, as well as barriers such as poverty or ill health, can prevent individuals from being truly free. Therefore, they support state intervention to remove obstacles to freedom.
• Keynesianism: In the economic sphere, modern liberalism is associated with Keynesian economics, named after John Maynard Keynes. Keynes advocated for state intervention in the economy to manage aggregate demand, reduce unemployment, and smooth out the boom-and-bust cycle of capitalism. Modern liberals see such intervention as entirely consistent with the goal of enhancing individual freedom.

Modern liberalism, therefore, accepts a much larger and more active state than classical liberalism. The welfare state, public education, and public health services are seen as vital to creating the conditions of genuine freedom. However, modern liberals continue to value pluralism, tolerance, and individual rights, seeking to balance collective responsibility and individual liberty.

Differing Views and Tensions within Liberalism

The tension between classical and modern liberalism centres on the question of how best to secure individual freedom. These differing views can be summarised as follows:

• The state’s role: Classical liberals argue for a minimal or ‘night-watchman’ state, limited to enforcing the law and protecting property. Modern liberals argue that the state should be ‘enabling’; creating the conditions for people to be free by remedying social disadvantages.
• The meaning of freedom: Classical liberals favour negative freedom, stressing non-interference; modern liberals favour positive freedom, emphasising the capacity to act and develop.
• The nature of the individual: The classical liberal view sees individuals as self-reliant and competitive (egoistical individualism), whereas modern liberals are more optimistic about cooperative human development (developmental individualism).
• Economic policy: Classical liberals support laissez-faire capitalism, trusting the market to allocate resources efficiently. Modern liberals are more sceptical and support Keynesian policies to mitigate market failures and promote social justice.

These tensions are not merely academic; they play out in public debates about the welfare state, taxation, education, and the regulation of markets. For instance, arguments for reducing welfare spending often invoke classical liberal ideas of self-reliance, while calls for greater public investment in health or education reflect modern liberal convictions.

Key Terminology Explained

Egoistical Individualism

Egoistical individualism is the belief that individuals are essentially self-interested, and that society is best ordered when each person pursues their own happiness, provided they do not harm others. This concept is foundational to classical liberalism and underpins its preference for limited government and free markets.

Developmental Individualism

Developmental individualism contrasts with the egoistical type by emphasising the importance of creating conditions in which individuals can develop their abilities and talents. Modern liberals argue that this may require collective action and government support, especially in the face of systemic inequalities.

Negative Freedom

Negative freedom is the absence of external constraints or interference. It is the ‘freedom from’; freedom from coercion, from arbitrary authority, from restrictions imposed by others or the state. Classical liberals see this as the core of liberty.

Positive Freedom

Positive freedom is the ‘freedom to’; the capacity to realise one’s own potential and act upon one’s will. Modern liberals argue that without certain preconditions, such as education or economic security, individuals cannot be truly free, even if left alone by the state.

Laissez-Faire Capitalism

Laissez-faire capitalism is an economic system in which government plays as little a role as possible, letting markets regulate themselves. It is favoured by classical liberals, who believe government intervention distorts efficiency and undermines personal autonomy.

Keynesianism

Keynesianism is the economic theory that advocates for active government intervention in the economy, particularly through fiscal and monetary policy, to manage economic cycles and promote employment. Modern liberals adopted Keynesianism as a way to correct the excesses and failures of unregulated capitalism, especially after the Great Depression.

Summary

Liberalism’s core promise to maximise individual freedom has been interpreted in different ways across history, leading to significant tensions within the tradition. Classical and modern liberalism offer contrasting answers to questions about the state, the market, and the meaning of freedom. These disputes remain central to contemporary political debates in the UK and beyond. Understanding these nuances is essential for any serious study of political ideas.